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EUR/USD tests 1.0950 on higher European indices futures

FXStreet (Mumbai) - The EUR/USD pair halted its minor-recovery mode and reverted back to the mid-point of 1.09 handle, as the bears regained lost momentum on renewed strength in the USD dollar.

EUR/USD on its way to 1h 100-SMA at 1.0945

Currently, the EUR/USD pair loses -0.36% and trades at fresh session lows of 1.0950, having failed once again to surpass 1.0970 region. The main currency pair accelerated to the downside after meeting fresh supply near 1.0967/70 band, and now looks to test the hourly 100-DMA support located at 1.0945.

The risk-on rally seen in European indices futures boosted the risk currency in the US dollar, dragging EUR/USD to fresh daily lows. The German DAX futures rally 0.70%, the UK’s FTSE futures also gain 0.70% while the Euro Stoxx futures advance 0.55%. Moreover, the USD bulls also continue to cheer the upcoming Fed hike this week as also Friday’s better than expected US retail sales and PPI numbers.

Meanwhile, the major now await the European open for fresh momentum while ECB Chief Draghi speech due later today is likely to hog the limelight amid a data-light trading calendar.

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EUR/USD Technical Levels

The pair extends losses, with the immediate support seen at 1.0945 (1h 100-SMA), below which 1.0924 (Dec 10 & 11 Low) could be tested. On the flip side, the immediate resistance is seen at 1.1000 (round number). A break beyond which doors will open for a test of 1.1033 (Dec 11 High).

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